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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) July 12, 2006
RESOURCES CONNECTION, INC.
Delaware 0-32113 33-0832424
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
695 Town Center Drive, Suite 600, Costa Mesa, California 92626
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (714) 430-6400
Not applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
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ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On July 12, 2006, Resources Connection, Inc. issued a press release
announcing its financial results for the quarterly period and fiscal year ended
May 31, 2006. A copy of the press release is attached hereto as Exhibit 99.1.
The information in this current report on Form 8-K, including Exhibit 99.1
hereto, shall not be deemed "filed" for purposes of Section 18 of the Securities
Exchange Act of 1934, as amended, and shall not be incorporated by reference
into any registration statement or other document pursuant to the Securities Act
of 1933, as amended.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits
EXHIBIT NO. DESCRIPTION
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Exhibit 99.1 Press Release issued July 12, 2006
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
RESOURCES CONNECTION, INC.
Date: July 12, 2006
By: /s/ Donald B. Murray
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Donald B. Murray
Chief Executive Officer
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
- ------------ --------------------------------------------------------------
Exhibit 99.1 Press Release issued July12, 2006
Exhibit 99.1
RESOURCES CONNECTION, INC. REPORTS YEAR-END RESULTS
REVENUE FOR FISCAL 2006 IMPROVES ALMOST 18% OVER PRIOR YEAR
COSTA MESA, Calif., July 12 /PRNewswire-FirstCall/ -- Resources Connection,
Inc. (Nasdaq: RECN), an international professional services firm that provides,
through its operating subsidiary, Resources Global Professionals, experienced
accounting and finance, risk management and internal audit, information
management, human capital, supply chain management and legal professionals to
clients on a project basis, today announced financial results for its fourth
quarter and year ended May 31, 2006.
Total revenue for the fourth quarter of fiscal 2006 improved 10.6% to $165.9
million from $150.0 million for the same quarter in fiscal 2005. Net income for
the quarter ended May 31, 2006, was $15.7 million, or $0.31 per diluted share,
compared to net income of $15.7 million, or $0.31 per diluted share, in the May
2005 quarter.
For the year ended May 31, 2006, revenue grew 17.9% to $633.8 million
compared to $537.6 million for the fiscal year ended May 31, 2005. Net income
for fiscal year 2006 was $60.6 million, or $1.17 per diluted share versus $56.1
million, or $1.11 per diluted share, in the prior year period.
"This has been a year of balanced investment along with strong revenue
growth even in the face of lower demand for regulatory compliance services,"
said Donald Murray, Chairman and CEO of Resources Global Professionals. "This
year, we opened 13 new offices and the cost of these new offices affects our
general and administrative expenses and impacts our profit until those offices
achieve breakeven status. As we look forward to fiscal 2007, we are well
positioned to use the breadth of our service offerings and the enhanced
international reach we have established during this past year to continue
providing our clients with superior service that is a better value than
traditional professional services firms. We are especially proud of all the
people at Resources who deliver for our clients every day."
ABOUT RESOURCES GLOBAL PROFESSIONALS
Resources Global Professionals is an international professional services
firm that helps business leaders execute internal initiatives. Originated as
part of Deloitte & Touche LLP in North America, the Company provides accounting
and finance, human capital, information management, supply chain management,
internal audit/risk management, and legal services on a project basis. Its
legacy in Europe is from Ernst & Young and in Asia Pacific from Deloitte Touche
Tohmatsu Australia. Today, the Company is completely independent, autonomous and
publicly traded on NASDAQ under its parent entity's name, Resources Connection,
Inc. In addition to its project professional services, Resources Global
Professionals has established itself as a leading business services provider for
companies seeking independent and cost effective assistance for meeting or
complying with many of the complex business and regulatory issues in today's
marketplace.
Headquartered in Costa Mesa, California, the Company operates from more than
70 worldwide offices. The U.S. client portfolio boasts more than 40 of the
Fortune 50 companies and more than half of the Fortune Global 100. In June 2006,
Resources was named to BusinessWeek's 100 Hot Growth Companies list, debuting at
#21. The Company is ranked #3 on Forbes 2005 list of 100 Best Mid-Cap Stocks and
has been on Forbes 200 Best Small Companies list for the last four years, most
recently at #16. More information about the Company is available at
http://www.resourcesglobal.com .
Resources Global Professionals will hold a conference call for interested
analysts and investors at 5:00 pm, EDT today, July 12, 2006. This conference
call will be available for listening via a webcast on the Company's Internet web
site, at http://www.resourcesglobal.com .
Certain statements in this press release are "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. Such forward-looking statements may be
identified by words such as "anticipates," "believes," "can," "continue,"
"could," "estimates," "expects," "intends," "may," "plans," "potential,"
"predicts," "should," or "will" or the negative of these terms or other
comparable terminology. Such statements and all phases of Resources Connection's
operations are subject to known and unknown risks, uncertainties and other
factors, including seasonality, overall economic conditions and other factors
and uncertainties as are identified in Resources Connection's Form 10-K for the
year ended May 31, 2005 and Form 10-Q for the quarters ended August 31, 2005,
November 30, 2005 and February 28, 2006 (File No. 0-32113). Readers are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date hereof. Resources Connection's, and its industry's,
actual results, levels of activity, performance or achievements may be
materially different from any future results, levels of activity, performance or
achievements expressed or implied by these forward-looking statements. The
Company undertakes no obligation to update the forward-looking statements in
this press release.
RESOURCES CONNECTION, INC.
SUMMARY OF OPERATIONS
(in thousands, except per share amounts)
Quarter Ended May 31, Year Ended May 31,
------------------------ ------------------------
2006 2005 2006 2005
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(unaudited) (unaudited)
Revenue $ 165,862 $ 150,009 $ 633,843 $ 537,636
Direct costs of services 99,383 89,983 384,429 324,642
Gross profit 66,479 60,026 249,414 212,994
Selling, general and
administrative expenses 40,426 33,451 149,736 116,402
Operating income before
amortization and depreciation 26,053 26,575 99,678 96,592
Amortization of intangible
assets 435 444 1,740 1,743
Depreciation expense 1,034 552 2,958 2,191
Operating income 24,584 25,579 94,980 92,658
Interest income (1,582) (827) (5,015) (2,128)
Income before provision for
income taxes 26,166 26,406 99,995 94,786
Provision for income taxes 10,421 10,694 39,398 38,730
Net income $ 15,745 $ 15,712 $ 60,597 $ 56,056
Diluted net income per share $ 0.31 $ 0.31 $ 1.17 $ 1.11
Diluted shares 51,369 50,533 51,676 50,484
RESOURCES CONNECTION, INC.
SELECTED BALANCE SHEET INFORMATION
(in thousands)
May 31, 2006 May 31, 2005
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(unaudited)
Cash, cash equivalents, short-term investments
and long-term marketable securities $ 185,439 $ 134,741
Accounts receivable, less allowances $ 90,719 $ 80,848
Total assets $ 397,389 $ 319,762
Current liabilities $ 66,583 $ 60,286
Total stockholders' equity $ 317,436 $ 248,367
SOURCE Resources Connection, Inc.
-0- 07/12/2006
/CONTACT: Sarah Lazarus, +1-978-369-4478, Sarah@CL-Media.com, for
Resources Connection, Inc.; or Steve Giusto, Chief Financial Officer of
Resources Connection, Inc., +1-714-430-6500, Steve.Giusto@resources-us.com/
/Web site: http://www.resourcesglobal.com /
(RECN)